C H V R O H OMO/ Creoli+Uniensj 

A b L 802>7 

CHURCH 
AND 

CREDIT UNIONS 



Deaclöffied 



O n Money 

" T h e chief and most excellent 

rule for the right use of money is 

one which the heathen philoso-

phers hinted at, but which the 

C h u r c h has traced out clearly, 

and has not only made' known to 

m e n ' s minds, but has impressed 

upon their lives. It rests on the 

principle that it is one thing to 

have a right to the possession of 

money and another to have a right 

to use money as one wills." 

Pope Leo X I I I : Rerum Novarum 

( M a y 15, 1891) 





The Motivation For The Parish Credit Union 

In November of 1 9 6 0 there were 8 2 6 Catholic 
organizations with Credit Unions throughout the 
United States. N o other C h u r c h group could equal 
this figure for Credit Unions in existence. Some of 
these Credit Unions were small; others had grown 
greatly such as the M t . Carmel Parish Credit Union 
in Pueblo, Colorado, which has assets totalling near-
ly $3,500,000.00. 

Credit Unions are groups of persons who have 
joined together by a c o m m o n bond to promote thrift 
and to provide provident and productive loans to 
one another at a low rate of interest—never more 
than 1 % per month on the unpaid balance of the 
loan. T h e y are dedicated to the ideal of uplifting 
the economic standing of the individual. T h e Cath-
olic Credit U n i o n hopes to alleviate some of the fi-
nancial weight from the members so that those same 
members, individually, can devote their efforts to 
becoming better Catholics, better parents and bet-
ter citizens. 

M a n is assimilated to Christ in some real way by 
Charity, that is, primarily the love of God, and sec-
ondly, love of man for the love of God. T h i s assimila-
tion to Christ motivates the Catholic Credit U n i o n 
in its proper sense and gives to the Credit Union its 
purpose for existence. 

T h e Catholic Credit Union, if it is to fulfill its 
complete purpose as a work of Catholic Action, must 
work towards more than savings and loans for pro-
ductive and provident purposes. 

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Catholic Social thought must be present in each 
of its actions. Cooperation, Catholic cooperation 
must exist. 

" N o man is an island," spoke the poet John 
Donne in one of his best known poems. 

Indeed today, possibly more than ever before, no 
man is an island. M a n can no longer remove him-
self, nor can he afford to be apart from the society 
in which he lives. M a n removes himself from his 
society only by dying, by s h u c k i n g off the material 
being from the purely spiritual. Until that time, 
man needs his fellow man for his livelihood for his 
existence, for his continued living in the world. 

T h o u g h each h u m a n being is an individual, self-
determining person, he is at the same time a mem-
ber of a community. A s such, no person can develop 
himself physically, morally, intellectually and spirit-
ually without constant interaction with and the help 
of the other members of the groups to which he 
belongs. 

Each person is incomplete of and by himself. 
However, men have interlocking needs and talents; 
therefore, the individual person finds his material 
completion within the community. T h e Creator in-
tended persons to share and help each other; to 
cooperate with one another. It is this cooperation, 
and not competition, which should characterize 
h u m a n life. 

Cooperation is the key to all economic success, 
social peace and even spiritual growth. Each Christ-

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¡an, and moreover each person, remains a citizen 
of two worlds throughout his l i f e — t h e natural and 
the supernatural. A n d the supernatural community 
of the C h u r c h flourishes if there is a healthy social 
o r d e r — i n economics, in politics and in social being. 

Benedict X V once stated that it was precisely in 
the field of economics that the salvation of souls 
was imperiled. T h i s same Church, founded by Christ, 
is a God-given model of community living and co-
operation which must be worked into the natural 
order of m a n ' s social existence. 

T h e Catholic C h u r c h was founded with this idea 
of completion and sharing at its core. W e must love 
God with our whole minds, hearts and souls. A n d , 
then O u r Lord tells us, " T h i s , then, is the second 
great commandment, to love thy neighbor as thy-
self for the love of G o d . " A n d when Christ gave us 
the Lord's Prayer, it began, " O u r Father, who art in 
heaven." It is not " M y Father" or " Y o u r Father" 
but " O u r F a t h e r " — t h e father of each of us here on 
earth, living together and sharing in the presence 
of Christ. 

Cooperation is in direct contrast to an economic 
phenomena known as rugged individualism which 
sprung up throughout Europe four centuries ago, 
and which is still so prevalent in m u c h of our own 
country and all throughout the world today. 

T h i s rugged individualism seems to be a cause 
of a great deal of the strife which is present today 
in fields of relationships between governments, 
churches and groups of people. T h e philosophy 

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seems to have become, can take care of myself, 
so you just watch out for yourself and, most of all, 
don't get in my way." It is state against state, 
church against church, and man against man with 
" t h e strongest, the biggest the most powerful, the 
toughest, going to survive and that's the law of the 
jungle." 

W h a t if it is as H o f f m a n Nickerson so adequately 
described as a " B l e e d i n g victory, with the victor fall-
ing, impaled and dying over the body of the de-
feated." 

Credit Unions are a reaction against this rugged 
individualism. A n d when critics of credit unions 
sound out against the movement because they claim 
that credit unions are bad for banking, business and 
other financial institutions, they should be remind-
ed that credit unions are against no one. N o one, 
that is, except the predatory rugged individualist 
whose supreme aim is to prey on the wants of his 
fellowmen. 

T h e movement aims at c o m m o n cooperative work 
for all to partake in, for the sake of a decent liveli-
hood for all. It aims at m a x i m u m distribution of 
goods among all men. Its attitude toward material 
goods is the true Catholic attitude based on the 
principle that the goods of this earth are here to 
serve as instruments for the decent living of all 
men without exception as moral and intellectual 
personalities. That is why credit unions are and al-
ways must be more than an economic movement; 
they are a philosophy of life. 

T o achieve Catholic results in the Credit U n i o n 

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movement, our natural efforts need the guidance 
and assistance of C h r i s t — t h e grace of God. If not, 
it could fall into the philosophy that it should oper-
ate and could operate by man a l o n e — s a y i n g that 
man is sufficient in himself and there is no need 
for God. 

Returning to the concept of rugged individualism 
for a brief moment, it might also be well to note 
that the development of this rugged individualism 
went hand in hand with the decline of the influence 
of Christianity and Catholicity and with the increase 
of modern paganism. It is immaterial to discuss here 
whether the decline of the Christian spirit brought 
about the increase of pagan individualism, or wheth-
er the fostering of selfish greed caused the Christian 
spirit to decline. T h e fact remains that the two were, 
and still are, incompatible. 

T h i s again, is another fact supporting the belief 
which realizes that any movement towards Christian 
ideal, such as the Credit Union, when fostered apart 
from all relations to Christ, will soon decline. It 
will, in spite of its manifest idealism, be in the 
realm of the material and go the way of all flesh. 

Today the world is faced with grave problems. 
T h e ideal of the Credit Union M o v e m e n t in general, 
and Catholic Credit Unions in particular, is the same 
ideal which must be fostered if these problems are 
to be solved. There must be a return to the recog-
nizance that all men are brothers under God and 
through Christ. 

It is this ideal that is the greatest asset of Credit 
Unions and the highest goal for which they must 

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strive. T h i s factor is m u c h greater than the great 
number of members or dollars that are in Credit 
Unions across the country. Or the fact that most 
pay a dividend and sometimes an interest refund, 
or the low rate of interest, or that loans and savings 
are insured, or that loans are often made to persons 
that can't get a loan elsewhere. These are of second-
ary importance. 

T h e primary importance is that man is helping 
man, and not doing it for profit or fame or exploita-
tion, but because he is his brother under God the 
Father, through Christ our Lord. 

It is necessary that man return to and continue 
to help man, and to realize that this is not only his 
right but his duty. M a n needs to help and to be 
helped. A n d he needs to retain his personal integrity 
and dignity while he is being helped. 

H u m a n reason is becoming more and more aware 
of this. It is becoming more widely recognized that 
the rights of man as a h u m a n and civic person are 
not enough; he also has social rights, the rights of 
a person engaged in production and c o n s u m p t i o n — 
rights as a workingman and as a buying man. 

Credit Unions, particularly Catholic Credit U n -
ions, must present vastly more than good financing. 
They must be a moral force to help the individuals 
live and purchase realistically within their economy. 
T h e y must encourage thrift in the fullest sense of 
the word by discouraging needless and improvident 
spending, and by encouraging saving in a practical 
manner. But, they must be even more. T h e y must 

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be instruments of Catholic Social thought, integrat-
ing the ideal which they bear into every action. 
T h e y must benefit the community of the C h u r c h by 
integrating these same ideals into the members they 
serve who are members of that same community. 

T h e spiritual, moral and economic spheres in the 
everyday life of man cannot be totally separated. 
Christ Himself pointed the way for us. He not only 
expounded the moral law and unveiled the truths 
of Revelation. H e also fed the hungry and cured 
the sick. W e can do no better than to imitate our 
Divine M o d e l . 

If in Public and Private life, religion is in part 
ineffectual today, it is because our lives are so 
departmentalzed. Religion is confined to certain 
exercises and practices and to certain times. Need-
less to say, such ways are wrong and reprehensible. 
Catholicity should form and influence our entire 
lives. Does not the Catholic Credit Union in the 
parish represent an admirable step towards achiev-
ing this goal? 

Pope Leo X I I I encouraged the formation of so-
cieties and associations for helping each individual 
member to better his condition so far as he can in 
mind, body and property. 

T h e key to all of this is active participation. In 
our worship we pray better if we actively participate; 
in politics we govern better if we actively partici-
pate. So, too, we handle our financial affairs better 
when we actively participate in controlling our 
money according to its intended use. 

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Perhaps, it can be s u m m e d up in the problem 
occurring from fences. Today, there are all sorts 
of z i g z a g g i n g and crisscrossing fences running be-
tween races, creeds and nationalities of the world. 
A t the same time, due to improved transportation 
and communications, man is physically closer to 
other men than at any time in history. These op-
posing forces are completely antagonistic to each 
other. T h e fences must come down. M o d e r n prog-
ress and development have made the world a neigh-
b o r h o o d — i t is the God-given task to man to make 
the world a brotherhood through Christ. In the 
Catholic Parish Credit Union, we have an oppor-
tunity to begin accomplishing this. 

Catholic living is total living; Catholicity is a total 
way of life . . . not merely a series of high sound-
ing platitudes. A n d it must be carried into every 
facet of life of the Catholic l a y m a n — i n his work, 
in his recreation, in his family life, in his credit 
union. 

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The Growth and Operation of a Parish Credit Union 

Pueblo, Colorado is a city situated at the foot of 
the Sangre de Christo (Blood of Christ) range of the 
Rocky M o u n t a i n s . T o the East of the city stretch 
the Great Plains of the Mississippi. 

T h e Pueblo Plant of T h e Colorado Fuel and Iron 
Corporation sets the tempo for the economy of the 
city. It is primarily an industrial town. 

In 1942, C F & I was operating at full production 
because of the great need for steel by the A r m e d 
Forces engaged in W o r l d W a r II. 

In 1942, a small group of persons gathered in 
the rectory of M o u n t Carmel Parish to culminate 
months of discussions by applying for a Credit 
Union Charter from the State of Colorado. T h e 
urging to form a Parish Credit Union had come 
mostly from a Jesuit priest and, at the time, assist-
ant pastor at M o u n t Carmel, Father Charles J. M u r -
ray. 

By the end of 1960, assets of the same Credit 
Union, M t . Carmel Parish Credit Union, totaled 
$ 3 , 3 8 2 , 3 3 2 . 0 4 and by now have passed the three 
and one half million dollar mark. M e m b e r s of the 
Credit U n i o n have grown from the small handful of 
founders to 5 5 4 5 . 

In the span of 18 years, M t . Carmel Parish Credit 
Union has become a proven financial success in the 
Pueblo community. It is also considered one of the 
outstanding Pa rish Credit Unions in the United 
States. 

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W h a t is a Credit U n i o n ? How does a Parish Credit 
Union which has grown so greatly conduct its opera-
tion? W h a t does M t . Carmel Parish Credit Union 
do? 

Briefly, the Credit Union idea was born in Flam-
mersfeld, Germany, by the mayor of that small 
town, W i l l i a m Henry Raiffeisen. Credit Unions were 
first fostered and introduced in North America at 
Levis, Canada, by a legislative reporter, A l p h o n s e 
DesJardins. DesJardins was also responsible for 
founding the first credit union in the United States 
— a Parish Credit Union in Manchester, N e w H a m p -
shire. 

Edward A . Filene, a Boston merchant, was a prime 
factor in the establishment of Credit Unions in the 
U. S. He provided capital for the Credit Union 
movement to become organized and seek favorable 
legislation, both in the various states and in the 
U. S. Congress. 

Credit Unions are basically groups of persons 
that have gathered together by some c o m m o n bond 
to provide a place where the members of the group 
can save and borrow for productive and provident 
purposes at a low rate of interest. 

Credit Unions are chartered by either the State 
or the Federal Government. Policy of the Credit 
Union is set by a Board of Directors, chosen from 
the membership. A l l loan applications are acted on 
by a Credit Committee and the books and papers 
of the Credit Union are checked regularly by a Su-
pervisory Committee. A l l of these persons serve 
voluntarily without pay. 

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M a n y changes have occurred in M t . Carmel Par-
ish Credit Union since it first opened its doors in 
1942. T h e most significant factor was the opening 
of the field of membership by amendment to the 
bylaws in 1 9 4 9 which permitted all Catholics in 
the C o u n t y of Pueblo to participate. 

Eleven full time employees now staff the opera-
tion of the Credit Union. T h e y are headed by 
Richard T. Lagerman, a dedicated Credit Union 
leader who came to the Credit Union in M a r c h , 
1949. In 1958, Lagerman, together with Clarence 
C. Bellinger, a Pueblo attorney and Past President 
of the Credit Union, were named Knights of St. 
Gregory in recognition of their efforts to elevate 
the economic status of Pueblo Catholics. 

T h e members of the Boards and Committees are 
Catholic men from every walk of life in Pueblo, 
with Father M u r r a y still serving as the Treasurer 
of the Credit Union. 

T h e offices of the Credit Union are still located 
in the basement of M o u n t Carmel Church, even 
though the growth of the Credit Union has necessi-
tated their expansion many times. 

T h e savings of the members of the Credit U n i o n 
now exceed three million dollars. A very small por-
tion, but yet a very unique one, consists of the sav-
ings of the children of four of the Catholic grade 
schools in the city. Each Tuesday is Credit U n i o n 
day at the schools and a representative of the Credit 
Union stops at each of the schools and picks up the 
children's savings. M t . Carmel Parish Credit U n i o n 

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believes that thrift is more easily learned if taught 
young. 

Loans at the Credit Union are made for many 
and varied purposes. 5 4 1 7 loans were made in 
1960; for the purpose of acquiring or improving 
homes, consolidating debts, buying or repairing 
autos, buying furniture and appliances, medical and 
hospital bills, vacation and travel, education, cloth-
ing, Christmas, strike or layoff, to help relatives or 
to pay real estate taxes. 

A n o t h e r type of loan made by the Credit U n i o n 
are educational loans to deserving third and fourth 
year college students. These loans are made at an 
exceptionally low rate of interest and are not pay-
able until one year after the student's graduation 
from college. 

A special project of M t . Carmel Parish Credit 
Union is the promotion of Parish Credit Unions 
throughout the country. In the past, a series of 
pamphlets pertaining to this has been produced 
and printed by the Credit Union. These are mailed 
on request to places ranging from Alabama to 
W a s h i n g t o n to Jamaica and across the ocean to 
Ireland and Scotland. 

A s a current project, the Credit U n i o n is send-
ing two priests to the Credit U n i o n National A s s o -
ciation ( C U N A ) School for Credit U n i o n Personnel 
at M a d i s o n , W i s c o n s i n each summer. 

S E R V I N G P U E B L O C A T H O L I C S is the theme of 
M t . Carmel Parish Credit Union. A n d their aim is 

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to serve the over 3 6 , 0 0 0 Catholics in the C o u n t y of 
Pueblo. 

After eighteen years the Credit Union has grown 
greatly, both in size and in serving. It is dedicated 
to and has as its patrons the Holy Family of N a z -
areth. A n d , as it is stated in their 1960 A n n u a l 
Statement to Shareholders," . . . the Credit Union 
pledges its efforts to helping relieve the temporal 
distress of Pueblo Catholic families, thereby giving 
those families a greater opportunity and more time 
to emulate the Holy Family by keeping the ideal of 
Jesus, M a r y and Joseph always before t h e m . " 

— T h o m a s A . Edwards 

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Contact the Credit U n i o n League in your State or 

Province or write Credit U n i o n National Association, 

P. O. Box 4 3 1 , M a d i s o n 1, W i s c o n s i n for assistance 

in organizing a Credit Union. Y o u r inquiry will be 

w e l c o m e — n o o b l i g a t i o n — n o charge. 

Presented by M t . Carmel Parish Credit Union 

4 1 9 Clark St. 

P. O. Box 3 9 0 

Pueblo, Colorado 

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